Note

- Leases

Finance Leases.

2019,

the Company obtained

two

finance leases for CAD

1.1

million (approximately USD

$0.8

million at the prevailing exchange rates on the transaction dates) to finance vehicle equipment. The interest rates for these finance leases were

8.0%

per annum with monthly principal and interest payments of less than

$0.1

million. These leases mature in

August 2023.

2017,

the Company obtained

three

finance leases for CAD

1.1

million (approximately USD

$0.8

million at the prevailing exchange rates on the transaction dates) to finance vehicle equipment. The interest rates for these finance leases range from

4.0%

7.8%

per annum with monthly principal and interest payments of less than

$0.1

million. These leases mature between

April

2021

September

2022.

August

2016,

the Company obtained a finance lease for

0.6

million Indian Rupees (approximately USD

thousand at the prevailing exchange rate on the transaction date) to finance vehicle equipment. The interest rate for this finance lease was

15.6%

per annum with monthly principal and interest payments of less than USD

thousand. This lease expired in

July

2019.

The Company has several significant operating lease agreements, with lease terms of

one

years, which consist of real estate, vehicles and office equipment leases. These leases do

not

require any contingent rental payments, impose any financial restrictions or contain any residual value guarantees. Certain of the Company’s leases include renewal options and escalation clauses; renewal options have

not

been included in the calculation of the lease liabilities and ROU assets as the Company is

not

reasonably certain to exercise the options. Variable expenses generally represent the Company’s share of the landlord’s operating expenses. The Company does

not

have any arrangements where it acts as a lessor, other than

one

sub-lease arrangement.

April 30, 2020

, the Company had operating lease liabilities of

$12.1

million

nd operating ROU assets o

$11.2

million, wh

ich are reflected in the consolidated balance sheet. At

April 30, 2020

, the Company also had finance lease liabilities of $

0.9

million included in current maturities of long-term debt and long-term debt less current maturities, and finance ROU assets of $

1.0

millio

which were included in

property plant and equipment, net of accumulated depreciation

in the consolidated balance sheet.

Supplemental balance sheet information related to leases is as follows:

Operating and Finance leases:	April 30, 2020			January 31, 2020
Finance leases assets:
Property and Equipment - gross	$	1,613		$	1,696
Accumulated depreciation and amortization		(573	)		(551	)
Property and Equipment - net	$	1,040		$	1,145

Finance lease liabilities:
Finance lease liability short-term	$	404		$	417
Finance lease liability long-term		540			677
Total finance lease liabilities	$	944		$	1,094

Operating lease assets:
Operating lease ROU assets	$	11,165		$	11,475

Operating lease liabilities:
Operating lease liability short-term	$	1,254		$	1,040
Operating lease liability long-term		10,851			11,214
Total operating lease liabilities	$	12,105		$	12,254

Total lease costs consist of the following:

Lease costs	Consolidated Statements of Operations Classification	Three Months Ended April 30, 2020			Three Months Ended April 30, 2019
Finance Lease Costs
Amortization of ROU assets	Cost of sales	$	48		$	51
Interest on lease liabilities	Interest expense		19			9
Operating lease costs	Cost of sales, SG&A expenses		612			551
Short-term lease costs (1)	Cost of sales, SG&A expenses		23			176
Sub-lease income	SG&A expenses		(20	)		(20	)
Total Lease costs		$	682		$	767

(

) Includes variable lease costs, which are immaterial

Supplemental cash flow information related to leases is as follows:

	Three Months Ended April 30, 2020		Three Months Ended April 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases	$	105	$	50
Operating cash flows from finance leases	$	19		9
Operating cash flows from operating leases	$	954		618

	Three Months Ended April 30, 2020
ROU Assets obtained in exchange for new lease obligations:
Finance leases liabilities	$	-
Operating leases liabilities		27

Weighted-average lease terms and discount rates are as follows:

	April 30, 2020
Weighted-average remaining lease terms (in years):
Finance leases		2.8
Operating leases		8.5

Weighted-average discount rates:
Finance leases		6.4	%
Operating leases		8.0	%

Maturities of lease liabilities as of

April 30, 2020

, are as follows:

Year:	Operating Leases			Finance Leases
For the nine months ended January 31, 2021	$	3,287		$	346
For the year ended January 31, 2022		2,325			314
For the year ended January 31, 2023		2,188			255
For the year ended January 31, 2024		2,020			137
For the year ended January 31, 2025		1,320			-
For the year ended January 31, 2026		1,144			-

Thereafter		6,214			-
Total lease payments		18,498			1,052
Less: amount representing interest		(6,393	)		(108	)
Total lease liabilities at April 30, 2020	$	12,105		$	944

Rent expense on operating leases, which is recorded on straight-line basis, was

$0.7

million for the

three

months ended

April 30, 2020

and

2019

, respectively.